American Airlines, US Airways Extend Merger Deadline

Faced with a lawsuit from the Department of Justice (DOJ), American Airline and US Airways on Monday announced that each airline has agreed to extend the mutually agreed upon deadline for their proposed $14 billion merger.

The amended agreement extends the merger deadline from December 17, 2013 to January 18., 2014, which will be the last day either party may terminate the previously agreed upon merger.

"Our focus is on mounting a vigorous defense and winning our court case so the new American can enhance competition, provide better service to our customers and create more opportunities for our employees," Tom Horton, chairman, president and CEO of AMR, and Doug Parker, chairman and CEO of US Airways said in a joint statement Monday.

A trial to hear DOJ's challenge to the merger is scheduled for Nov. 25 at a district court in Washington D.C. The agency is looking to block the merger because it states the new American would lead to reduced competition and higher airfare for passengers.